Friday's trading session saw a wave of volatility driven by a surprise AI breakthrough, a shifting of the market cap throne, and escalating geopolitical tensions. Chinese AI startup Moonshot unveiled its Kimi K3 model, triggering a global selloff in semiconductor stocks, while Apple briefly overtook Nvidia as the world's most valuable company. Meanwhile, oil prices surged on intensifying conflict between the US and Iran, and gold rebounded despite heading for a weekly loss.
Moonshot's Kimi K3 Rattles Global Chip Stocks
Moonshot's announcement of its Kimi K3 artificial intelligence model sent shockwaves through global markets on Friday. The company claimed the model rivals leading offerings from OpenAI and Anthropic, prompting comparisons to last year's 'DeepSeek moment.' Investors grew concerned about the sustainability of AI spending and demand for advanced semiconductors.
The PHLX Semiconductor Index fell 1.19%, while the VanEck Semiconductor ETF declined 2%. In Tokyo, SoftBank Group, a major proxy for AI investments, plunged 9%. Chinese AI companies also took a hit, with Z.AI dropping 28% and MiniMax falling 16%. However, some analysts argued the development reflects China's rapid progress rather than a sudden disruption. Artificial Analysis ranked Kimi K3 ahead of Anthropic's Opus 4.8 on certain frontier benchmarks, making it the first Chinese open-weight model to achieve that milestone. For more on this, see our article on Moonshot's Kimi K3: 2.8 Trillion Parameters Challenge US AI Dominance.
Apple Briefly Reclaims World's Most Valuable Company Title
Apple briefly overtook Nvidia as the world's most valuable publicly traded company on Friday, with its market capitalization reaching approximately $4.88 trillion versus Nvidia's $4.84 trillion. Apple shares hit a record high of $334.99, while Nvidia fell more than 3% during the session. However, Nvidia clawed back the title after reducing its intraday losses to 2%.
The two tech giants have followed different trajectories in 2026. Apple has gained about 22% this year, buoyed by investor enthusiasm for its artificial intelligence strategy and relatively modest capital spending model. Nvidia, meanwhile, has risen roughly 7%. The milestone comes as Apple continues expanding its AI strategy following the rollout of its revamped Siri platform and broader Apple Intelligence initiatives. HSBC upgraded Apple to Buy from Hold and raised its price target to $366 from $260. For a deeper dive, see Apple Reclaims World's Most Valuable Company Title from Nvidia as AI Strategy Gains Traction.
Oil Surges as Middle East Conflict Intensifies
Oil prices climbed around 4% on Friday as the conflict between the United States and Iran escalated, raising concerns over energy supplies through the Strait of Hormuz and the Red Sea. Brent crude rose to $87.77 a barrel, while West Texas Intermediate climbed to $82.19. Both benchmarks were on track for weekly gains of about 14%.
The market reacted after Iran launched additional strikes on US facilities across the Middle East following another wave of American attacks on Iranian military targets. Concerns also grew after Iran urged Houthi forces to consider disrupting Red Sea shipping if US strikes expanded.
Gold Rebounds but Heads for Weekly Loss
Gold prices rose on Friday but remained on track for their largest weekly decline in six weeks. Rising oil prices fueled inflation concerns and strengthened expectations that US interest rates could remain higher for longer. Spot gold gained 0.9% to $4,005.83 an ounce, while US gold futures settled 0.58% higher at $4,015.10. Despite Friday's recovery, bullion was down about 2.6% for the week.
Goldman Sachs noted: 'Gold's share in private portfolios remains low, and recent geopolitical developments, including Iran and broader tensions, may accelerate diversification beyond central banks to private investors.'
This article is for informational purposes only and does not constitute financial advice.
